Australia’s trade minister Andrew Robb has indicated that the Australian government would be receptive to a second takeover bid by ADM for GrainCorp. Since Mr. Robb’s comments, ADM shares have hit highs of US$43.60 on the New York Stock Exchange. Mr. Robb states that the treasurer’s decision to block ADM’s $3 billion takeover bid for GrainCorp. in late 2013 was meant to signal that the bid was poorly timed – coming so soon after the country’s wheat export industry had been deregulated. The Australian government has given ADM the opening to increase its stake in GrainCorp. from 19.85% to almost 25% to use as a platform from which to build shareholder support. Observers however, believe that ADM will wait until a new managing director is in place at GrainCorp. before making any further moves.
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